The 162-hectare ranch, which includes 90 hectares of vines (pictured), is located just east of Napa Valley in the North Coast AVA, Gallo said yesterday (28 April). A fee for the deal was not disclosed.

The news comes amid rising consumer demand for premium California wines in the US market.

Gallo said Ledgewood Creek currently produces Chardonnay, Sauvignon Blanc and Pinot Noir. 'This vineyard is a great addition to our portfolio to support the rapid growth we have had in our premium wine business,' said the senior vice president and general manager of Gallo's premium wine business, Roger Nabedian.

Data from the California-based Wine Institute shows that sales of the state's wines priced at $10 and above rose by 9% in volume across the US last year. Overall sales of California wine in the country rose by 3%, showing stronger demand for premium brands.

Gallo's purchase comes less than a week after Pernod Ricard said it had agreed to buy Kenwood Vineyards in Sonoma Valley, also for an undisclosed fee.

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